Original-Research: Desert Gold Ventures Inc.

Original-Research: Desert Gold Ventures Inc. - from GBC AG

13.08.2025 / 08:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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Classification of GBC AG to Desert Gold Ventures Inc.

     Company Name:               Desert Gold Ventures Inc.
     ISIN:                       CA25039N4084

     Reason for the research:    Management Interview
     Recommendation:             Management Interview
     Last rating change:
     Analyst:                    Matthias Greiffenberger, Cosmin Filker

Desert Gold Ventures CEO Jared Scharf on Unlocking the Full Potential of
Mali's SMSZ Project

West Africa's gold belt has long been a hotspot for major discoveries, and
Desert Gold Ventures' SMSZ Project in Mali is shaping up to be something far
bigger than just another deposit. With only 10% of its gold resources
incorporated into its recent Preliminary Economic Assessment (PEA) and a
strong projected IRR supported by a low all-in sustaining cost, the project
is already showing the potential to become a multi-million-ounce mining
camp. CEO Jared Scharf sees this as just the beginning, with a modular
processing plant strategy enabling fast scalability, a pipeline of near-term
oxide expansion opportunities, and exploration upside across more than 30
gold zones. In this conversation, Scharf shares how Desert Gold plans to
leverage the current gold market cycle, balance near-term cash flow with
long-term growth, and evolve into a leading player in the West African
mining landscape.

GBC AG: Your PEA incorporates only 10% of the SMSZ Project's gold resources.
What's the broader opportunity when you start tapping into the remaining
90%? Is this just the beginning for Desert Gold?

Jared Scharf: The broader opportunity stems not only from the additional
million ounces of gold resources not yet included in the PEA, but also from
the significant exploration upside not factored into the current 1.1
million-ounce resource. The SMSZ Project has over 30 open gold zones on the
property, only five of which form part of the resource. The bigger picture
is to develop a multi-million-ounce mining camp with several large open pits
feeding one or possibly two major mining operations on the SMSZ property.

GBC AG: With a strong projected IRR of 34% and $71 million in after-tax cash
flow, what do you see as the most exciting levers to further enhance the
project's economics?

Jared Scharf: The 34% IRR assumes a gold price of $2,500 per ounce. At the
current gold price, the project IRR is over 50%. With an all-in sustaining
cost (AISC) of roughly $1,350 per ounce, the project demonstrates tremendous
leverage to the gold price while maintaining solid margins, even if prices
pull back significantly. The most immediate opportunity is to incorporate
additional brownfield exploration targets located near the Barani starter
pit into the mine plan. I believe we could double or even triple the oxide
resources in the area in the near term. This would have a significant
positive impact on the project's economics by boosting annual gold
production and extending the mine life considerably before we transition to
the Gourbassi mine.

GBC AG: The modular processing plant strategy is both cost-effective and
flexible. How does this position Desert Gold to scale quickly and adapt to
new discoveries?

Jared Scharf: With so many gold zones on the SMSZ property, having a plant
that is movable yet capable of processing oxide, transition, and fresh rock
material gives us maximum flexibility. It allows us to incorporate both
existing gold zones and new discoveries into production quickly.

GBC AG: The Barani East permit allows for up to 36 kilotons per month of ore
processing. What would it take to double production and how soon could that
be realized?

Jared Scharf: As you can see from the PEA, the initial life of mine at 17
years is a bit long for a relatively small project. If we succeed in adding
more oxide resources in the Barani area, we will seriously consider ramping
up production to 36 thousand tonnes per month. This might shorten the mine
life by a few years, but it would generate more cash flow earlier in the
schedule, significantly boosting the project's net present value (NPV),
payback period, and IRR. Generating more cash flow sooner is always
preferable.

GBC AG: How do you view the current global gold market and where do you
think we are in the broader gold cycle? What does that mean for a company
like Desert Gold?

Jared Scharf: Very good question. Broadly speaking, I expect the United
States to enter another cycle of monetary easing. I believe lower interest
rates are on the horizon, which is typically a major tailwind for gold. That
said, gold has already had a solid run, so there could be some near-term
downward pressure, but the medium- to long-term outlook has never been
stronger in my view. I expect prices to move higher over the next several
years.

In terms of gold equities, the majors, which are more liquid and widely held
by investors, have already seen strong valuation gains. Some select
developers and juniors have also performed well. However, valuations remain
extremely low compared to historical levels, especially in the junior space.
I believe we are still in the very early stages of a cyclical bull market in
gold equities.

GBC AG: How does Desert Gold balance near-term production goals with
long-term growth potential across your projects in Mali and Côte d'Ivoire?

Jared Scharf: These are not mutually exclusive initiatives. In fact, they
are complementary. Exploration success at the SMSZ Project will directly
enhance our mining plan for the reasons I have already mentioned. At the
same time, diversifying our jurisdictional risk into Côte d'Ivoire provides
our shareholders with both security and additional growth potential.

GBC AG: Looking three to five years ahead, what is your vision for Desert
Gold and how do you see the company evolving in the West African mining
landscape?

Jared Scharf: In three to five years, I envision the SMSZ Project producing
gold from two or more open pits, with multiple drill rigs operating
continuously to expand nearby gold zones. My hope is that once we get
started, we simply won't stop.

In Côte d'Ivoire, we plan to begin exploration immediately after this year's
rainy season, with a maiden drill program at our Tiegba Project. The goal
there is to make a major discovery.

GBC AG: Jared, thank you for sharing your insights and vision for Desert
Gold Ventures. We look forward to following the company's progress as the
SMSZ Project and your broader West African portfolio continue to advance.


Jared Scharf: Thank you. It's been a pleasure to share our story, and I'm
excited about what lies ahead for Desert Gold and our shareholders.



You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=575f6c745df3b166910c8ec30e9c4517

Contact for questions:
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Date of Completion: 12.08.2025 (11:00 pm)
Date of First Distribution: 13.08.2025 (8:00 am)

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2182894 13.08.2025 CET/CEST